The Federal Court of Australia has ruled the backpacker law to be illegal which imposed a controversial 15% tax rate in 2017 on two visa categories for working holiday-makers from 8 countries. But a court today found the levy was in breach of existing treaties with the UK, US, Germany, Finland, Chile, Japan, Norway and Turkey.

Australia has used a so-called backpacker tax to illegally tax foreign workers from eight countries, according to a landmark ruling. In his ruling, Justice John Logan described the tax as a disguised form of discrimination based on nationality. It may force the government to repay hundreds of millions of dollars in total, local media reported. The Australian Tax Office said it was considering whether to appeal against the ruling.